Are small employee benefit plans exempt from audit requirements?
• Small pension plans are only exempt from audit requirements to the extent that at least 95% of their assets are qualifying plan assets. (See ERISA section 103(a)(3)(A)) • Small pension plans not meeting the qualifying plan asset test may avoid the audit requirement if all nonqualifying plan assets are covered by an ERISA section 412 fidelity bond. • All small plans that wish to avoid the audit requirement must also make certain required disclosures to plan participants.
